Incoterms define who’s responsible for what when it comes to delivering your coffee. It sounds simple, but there is often confusion about the terms. Our Incoterms poster explains which terms you can choose from when contracting coffee with Trabocca, and where the responsibility of the coffee, risk of loss and damage transfer from us (seller) to you (buyer).
The poster is divided into maritime terms (FOB and CIF/CFR), the ‘last mile’ terms (EXW, FCA), and two terms that can be used in both categories (DAP and DDP). Check our FAQ below to read the details of each term we use in our contracts, and download the poster for free so you’ll never second guess a term again when you contract your next coffee. Looking for all terms? Visit ICC’s website to find all 11 terms.
EXW – Ownership risk shifts to the roaster / buyer once Trabocca’s DO is issued and confirmed received by the warehouse. The coffee moves into the account of the roaster, and the inventory and delivery processes are managed by the roaster. Subsequent warehouse storage, handling, prep, and load-out charges are assessed to the roaster directly by the warehouse. The roaster is billed for transportation costs directly by their nominated carrier.
Ownership risk shifts to the roaster/buyer once the coffee is prepped and delivered/presented by Trabocca to the carrier selected by the roaster. Trabocca assumes warehouse handling, prep, and load-out charges, and risk is transferred to the roaster once their nominated carrier accepts the freight at the warehouse. The roaster is billed for transportation costs directly by their nominated carrier.
Ownership risk shifts to the roaster/buyer once Trabocca has made the coffee available for unloading at the roaster’s premises or nominated place of delivery. Trabocca assumes warehouse handling, prep, and load-out charges, contracts a carrier, and is responsible for any damages in transit. For a cross-border (to Canada) delivery, DAP terms stipulate that the roaster is responsible for customs clearance. Trabocca includes the price of delivery as a line item on the order invoice, or builds it into the price of the coffee, depending on which method is agreed to with the roaster at the time the contract is issued.
Ownership risk shifts to the roaster/buyer once Trabocca has made the coffee available for unloading at the roaster’s premises or nominated place of delivery. Trabocca assumes warehouse handling, prep, and load-out charges, contracts a carrier, and is responsible for any damages in transit. For a cross-border (to Canada) delivery, DDP terms stipulate Trabocca is also responsible for customs clearance. Trabocca includes the price of delivery as a line item on the order invoice, or builds it into the price of the coffee, depending on which method is agreed to with the roaster at the time the contract is issued.
Free On Board. Typically a term we only see with our purchase contracts. However, sometimes the purchase and sale contract both reflect FOB terms. If sale terms with a roaster are FOB, Trabocca facilitates the contracting, payment, and movement of coffee from farm, through processing, and onto a vessel in conjunction with a local export partner. Ocean freight is booked on the roaster’s/buyer’s account. Risk and ownership transfer to the roaster once the coffee is loaded to a vessel and Trabocca has provided sufficient documents (bill of lading, packing list, invoice, etc) for the roaster/buyer to import the container at the destination country. Roaster pays for ocean freight and facilitates and owns all pieces of the destination import process; ocean freight payment, customs clearance, trucking from port, and storage and inventory management at the facility of their choice.
Cost-Insurance plus Freight, or Cost plus Freight is an ocean freight term. Under CIF or CFR terms, Trabocca contracts with an exporter to facilitate coffee movements to a vessel, across the sea, and to the port of discharge. Container moves on Trabocca’s ocean freight contracts and is paid for by the seller, Trabocca. While underway, Trabocca provides the roaster/buyer with documents. Responsibility and risk shift to the roaster once the container has reached the destination port. Roaster facilitates and is financially responsible for customs clearance, trucking from the port, and delivery to the facility of their choice. Under CIF terms, Trabocca (seller) accounts for insurance to the nominated port. Under CFR terms, insurance is not included.